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Maryland Code, Local Government § 1-205

Current as of January 01, 2025 | Updated by Findlaw Staff

(a)(1) Subject to paragraph (2) of this subsection, a county or municipality may:

(i) pay the wage of an employee by direct deposit as provided in subsection (b) of this section; and

(ii) require an employee to receive the payment of wages by direct deposit as a condition of employment.

(2) A county or municipality may not require the payment of wages by direct deposit for an employee:

(i) who was hired before October 1, 2011, unless the county or municipality before October 1, 2011, required, by local law, regulation, or collective bargaining agreement, the payment of wages by direct deposit;

(ii) whose employment is not conditioned on the employee receiving the payment of wages by direct deposit; or

(iii) 1. who does not have a personal bank account; and

2. who informs the employee's employer that the employee wishes to opt out of direct deposit.

(3) If a county or municipality elects to pay wages by direct deposit, an employee who is not required to receive the payment of wages by direct deposit may elect to receive the payment of wages by direct deposit in accordance with subsection (c) of this section.

(b) If a county or municipality elects to pay the wages of its employees by direct deposit, the county or municipality shall:

(1) provide an employee who is required or elects to receive the payment of wages by direct deposit with an electronic fund transfer authorization form;

(2) deposit the wage of an employee into a personal bank account selected by the employee on the electronic fund transfer authorization form; and

(3) each time the county or municipality pays the wage of an employee by direct deposit, provide the employee with a direct deposit statement that includes:

(i) the total amount of the wage;

(ii) any amount deducted from the wage; and

(iii) the amount of the wage directly deposited into the personal bank account selected by the employee.

(c)(1) An employee who is required or elects to receive the payment of wages by direct deposit shall:

(i) complete and submit to the county or municipality the electronic fund transfer authorization form provided to the employee under subsection (b) of this section; and

(ii) select a personal bank account for the direct deposit of the employee's wages that is at a financial institution that participates in the automated clearinghouse network.

(2) Subject to paragraph (1)(ii) of this subsection, an employee may change the personal bank account or the financial institution designated on an electronic fund transfer authorization form by completing and submitting to the county or municipality a new electronic fund transfer authorization form.

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Cite this article: FindLaw.com - Maryland Code, Local Government § 1-205 - last updated January 01, 2025 | https://codes.findlaw.com/md/local-government/md-code-local-govt-sect-1-205/

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